This article first appeared on GuruFocus .
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Consolidated Adjusted Revenue:INR14,858 crores, a growth of 29% year-on-year.
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Consolidated Adjusted EBITDA:INR564 crores, a growth of 34% year-on-year.
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Consolidated Adjusted PAT:INR323 crores, a growth of 37% year-on-year.
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Net Debt Position:INR203 crores.
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Return on Capital Employed (ROCE):49.1%.
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Return on Equity (ROE):34.3%.
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Mobile Business Revenue:INR13,361 crores, a growth of 41% year-on-year.
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Mobile Business Operating Profit:INR472 crores, a growth of 53% year-on-year.
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Consumer Electronics Revenue:INR956 crores.
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Consumer Electronics Operating Profit:INR39 crores.
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Home Appliances Revenue:INR429 crores.
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Home Appliances Operating Profit:INR50 crores, with an operating margin of 11.7%.
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Telecom and Networking Products Revenue:INR1,635 crores, a growth of 148% year-on-year.
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Laptop, Tablets, and IT Hardware Products Revenue:INR331 crores, a growth of 481% year-on-year.
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Wearables and Hearables Revenue:INR207 crores.
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Release Date: October 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Dixon Technologies (India) Ltd ( BOM:540699 ) reported a 29% year-on-year growth in consolidated adjusted revenues for Q2 FY26, reaching INR14,858 crores.
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The company achieved a 34% increase in consolidated adjusted EBITDA, amounting to INR564 crores, and a 37% rise in consolidated adjusted PAT, totaling INR323 crores.
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Dixon Technologies maintained a strong balance sheet with a net debt position of INR203 crores and a negative working capital cycle of 6 days.
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The company is expanding its joint ventures and manufacturing capacities, including a JV with HKC for display modules and a 51% stake acquisition in Q-Tech India for camera and fingerprint modules.
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Dixon Technologies is actively pursuing export opportunities, particularly in Africa and Latin America, and has secured significant orders in the telecom sector, including a deal with a large US telecom customer.
Negative Points
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The reduction in GST rates led to a significant postponement of purchases, affecting Q2 sales, particularly in TVs, refrigerators, and washing machines.
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The introduction of new energy efficiency norms in India resulted in subdued growth for the refrigerator segment during the quarter.
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The company faces potential margin pressure in FY27 due to the expiration of the PLI scheme and the time required for integration benefits from new projects.
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There is a risk of reduced profitability from the Longcheer JV as profits will now be shared, despite potential operational efficiencies.
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Dixon Technologies' revenue growth rate has slowed compared to previous quarters, with a 28% increase in Q2 FY26, down from an average of 100% year-on-year growth in prior periods.
Q & A Highlights
Q: Can you provide more details about the large ODM customer in the mobile phone segment? A: We are in discussions with a large ODM for smartphones, expecting business to start by the end of Q4 this fiscal or early Q1 next fiscal. Expected volumes are around 0.5 million per month. Detailed information is not prudent to share at this time. - Atul Lall, Vice Chairman and Managing Director
Q: What growth can we expect in the telecom business, and how significant is the export opportunity? A: We grew from INR700 crores to almost INR4,800 crores this year. We have secured an order with a US-based company for radios, with commercial production starting by March. We expect this business to be about $150 million initially, growing to close to $1 billion in a couple of years. - Atul Lall, Vice Chairman and Managing Director
Q: Can you elaborate on the potential of the IT hardware segment? A: This year, we target revenues of INR1,200 crores to INR1,300 crores. We have started commercial production for HP, ASUS, and Lenovo. Our JV with Inventec will start commercial production by Q2 next fiscal. We expect the IT business to reach INR4,000 crores to INR5,000 crores in the next two years. - Atul Lall, Vice Chairman and Managing Director
Q: What is the outlook for mobile phone volumes, and how does the Longcheer JV fit into this? A: We expect to achieve 40 million to 42 million units this year. The Longcheer JV should become operational by Q1 next fiscal, contributing 8 million to 10 million units, part of the 60 million to 65 million target for next fiscal. - Atul Lall, Vice Chairman and Managing Director
Q: What are the plans for the battery energy storage systems? A: We are focusing on lithium-ion battery products for mobiles, leveraging our large captive market. We are in advanced discussions with a technology partner, and project plans are being finalized. - Atul Lall, Vice Chairman and Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
